Choosing where to send a Confirmation Request

Question 1

What impacts the auditor’s decision as to which of audit client’s bank to send a bank confirmation letter to (Size)

Answer 1

Size of balance

Question 2

What impacts the auditor’s decision as to which of audit client’s bank to send a bank confirmation letter to (Volume)

Answer 2

Volume of activity

Question 3

What impacts the auditor’s decision as to which of audit client’s bank to send a bank confirmation letter to (internal)

Answer 3

Degree of reliance on internal controls

Question 4

What impacts the auditor’s decision as to which of audit client’s bank to send a bank confirmation letter to (materiality)

Answer 4

Materiality to the FSs